Home / Business / GLOBAL MARKETS: stocks fall due to commercial concerns, oil loses some profits

GLOBAL MARKETS: stocks fall due to commercial concerns, oil loses some profits



* Asian stock markets recover, US futures drop 0.5%

* China, auto stocks take the brunt of Trump's trade war

* Oil prices lose profits already OPEC agrees to an increase in production

* Turkish lira rises more than 1 pct after the victory of Erdogan

* European shares is seen falling 0.5-0.6 pct

By Hideyuki Sano

TOKYO , June 25 (Reuters) – World stock prices fell on Monday due to escalating trade tensions between the United States and major economies, while crude oil prices gave up some of the strong gains made after the main oil exporters agreed a modest increase in production.

European shares, which touched weekly lows last week, were expected to extend their declines, with financial spreads predicting that the British FTSE and the German DAX would open 0.5 percent weaker, and French CAC would open 0.6 percent.

In Asia, the future mini S & P500 declined to 0.6 percent, while MSCI's broader index of Asia and the Pacific shares outside Japan fell 0.95 percent to 6-year lows months and a half Japan's Nikkei lost 0.8 percent.

The Wall Street Journal reported that the president of the United States, Donald Trump, plans to prohibit many Chinese companies from investing in US technology firms. UU And block exports of additional technology to China.

"Until last week, there was a vague optimism that we can overcome this, but now it seems that, unless the United States puts down its weapons, things will become more chaotic," said Hirokazu Kabeya, global strategist chief of Daiwa Securities.

As the threat of a full-fledged commercial war has become more real, the MSCI indicator of stocks worldwide has declined in five of the past six weeks, including last week, when it declined one percent , his biggest weekly fall in three months.

Chinese stocks were among the biggest losers, dropping 3.7 percent last week as Trump set his sights on Beijing, threatening to reach $ 200 billion of Chinese imports with tariffs of 10 percent. hundred.

China's policymakers were quick to moderate any possible economic drag on the trade dispute, as its central bank said on Sunday it would reduce the amount of cash some banks must keep as reserves by 50 basis points (bps).

The reduction in reserve requirements, the third by the central bank this year, had been widely anticipated by investors and aims to accelerate the pace of debt-for-equity swaps and stimulate lending for companies more little.

Despite the move, the CSI300 index of mainland stocks lost 0.8 percent, edging near a one-year low touched on Friday.

The global automotive manufacturers index remained unchanged after a 4.7 percent drop last week,

Trump threatened to impose a 20 percent tariff on Friday on all imports of assembled cars in the EU , a month after his administration car imports posed a threat to national security.

A senior official of the European Commission said on Saturday that the European Union will respond to any movement in the US. UU To increase the rates of cars manufactured in the block.

Investors and traders are concerned that the highest tariff threats from the US UU And retaliatory measures by others may derail a rare period of synchronized global growth.

Oil prices were supported after OPEC and OPEC producers agreed to a modest increase in production next month, without announcing a clear target for production increase, leaving operators guessing how much More will be pumped.

OPEC and non-OPEC said in their statement that they would increase supply by returning to 100 percent in accordance with previously agreed production cuts after months of underproduction.

"In reality, there are not many countries that can increase the results, with only Saudi Arabia with the capacity to increase production flexibly, but if only the Saudis increase production sharply, they could face the reaction of other countries" said Tatsufumi Okoshi, senior commodities economist at Nomura Securities.

U.S. Crude futures were trading at $ 68.36 a barrel, 0.3 percent below the day after Friday's rebound of 4.6 percent.

The Brent international benchmark fell 1.8 percent, however, to $ 74.22 a barrel, giving up more than half of its gains on Friday.

In the currency market, the euro remained firm at $ 1,156, bouncing after touching an 11-month low of $ 1.1508 on Thursday.

The euro rose on Friday as traders felt encouraged by the improved data on regional economic growth and the new guarantees of Italian politicians that their nation would not abandon the single currency.

Commercial activity in Germany and France, the two largest economies in the euro zone, rebounded in June despite commercial tensions between Europe and the United States, according to data from IHS Markit.

The dollar fell 0.55 percent to 109.38 yen, hitting its lowest levels in two weeks, as the yen was reaffirmed by worries about frictions in world trade.

The Turkish lira gained up to 1.6 percent on expectations of a stable government after Tayyip Erdogan and his ruling AK party won the Turkish parliamentary and presidential election on Sunday.

But his victory kept alive concerns about inflation and central bank independence given Erdogan's recent comments suggesting he wants to take more control of monetary policy.

The lira was last negotiated at 4.5850 per dollar, an increase of 1.7 percent from 4.6625 at the end of last week.

Bitcoin stabilized after reaching seven-month lows over the weekend as the security of cryptocurrency exchange operators came under increased scrutiny.

Digital money fell to only $ 5,780 and the last remained at $ 6,161.

Edition of Jacqueline Wong & SImon Cameron-Moore

.


Source link